Question
What is the NPV (to the nearest dollar) of an investment considered by Marion Inc.? Use the following data to answer the question: Marion's weighted
What is the NPV (to the nearest dollar) of an investment considered by Marion Inc.? Use the following data to answer the question: Marion's weighted average cost of capital: 12.5% Incremental investment in fixed assets today: $90,000 Constant incremental cash flow, assume coming at the end of each year for the next three years, due to Constant incremental sales, per year for the next three years: $100,000 Constant incremental operating costs per year for the next three years (not including depreciation): $25,000 Assume the incremental depreciation is calculated using straight-line (equal amount per year) with no salvage value remaining after the three years. Use a tax rate of 20.0%
If using excel, please show formulas. |
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